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CIBC CIBC Announces Third Quarter 2021 Results Financial News Toronto , ON - August 26 , 2021 - CIBC ( TSX : CM ) ( NYSE : CM ) today announced its financial results for the third quarter ended July 31 , 2021 . Third quarter highlights Q3 / 21 Q3 / 20 Q2 / 21 Reported Net Income $ 1,730 million $ 1,172 million $ 1,651 million YOY Variance + 48 % QoQ Variance + 5 % Adjusted Net Income ( 1 ) $ 1,808 million $ 1,243 million $ 1,666 million + 45 % + 9 % Reported Diluted Earnings Per Share ( EPS ) $ 3.76 $ 2.55 $ 3.55 + 47 % + 6 % Adjusted Diluted EPS ( 1 ) $ 3.93 $ 2.71 $ 3.59 + 45 % + 9 % Reported Return on Common Shareholders ' Equity ( ROE ) 17.1 % 12.1 % 17.1 % Adjusted ROE ( 1 ) 17.9 % 12.9 % 17.3 % Common Equity Tier 1 Ratio 12.3 % 11.8 % 12.4 % " We continue to deliver purpose - driven growth across all of our business units as we work with our clients to help them achieve their ambitions . This quarter's record top - line revenue and earnings per share underscore the breadth and quality of the growth we have across all of our key business units , as we continue to successfully navigate an uncertain environment by staying focused on our clients and on the wellbeing of our team , " said Victor Dodig , President and CEO , CIBC . " This quarter we continued to make strategic investments in our future growth as we have throughout the pandemic . " Results for the third quarter of 2021 were affected by the following items of note aggregating to a negative impact of $ 0.17 per share : $ 85 million ( $ 63 million after - tax ) increase in legal provisions ; and • • $ 20 million ( $ 15 million after - tax ) amortization of acquisition - related intangible assets . Our Common Equity Tier 1 ratio was 12.3 % at July 31 , 2021 compared with 12.4 % at the end of the prior quarter . CIBC's leverage ratio at July 31 , 2021 was 4.6 % . Core business performance Canadian Personal and Business Banking reported net income of $ 642 million for the third quarter , up $ 185 million or 40 % from the third quarter a year ago mainly due to lower provisions for credit losses and higher revenue , partially offset by higher expenses . Adjusted pre - provision , pre - tax earnings ( 1 ) were up $ 98 million or 12 % from the third quarter a year ago mainly due to higher revenue driven by robust volume growth and higher fee income , partially offset by higher expenses . Canadian Commercial Banking and Wealth Management reported net income of $ 470 million for the third quarter , up $ 150 million or 47 % from the third quarter a year ago , primarily due to higher revenue and a reversal of loan loss provisions in the current quarter , partially offset by higher expenses . Pre - provision , pre - tax earnings ( 1 ) were up $ 96 million or 19 % compared with the third quarter a year ago , primarily due to higher fee revenue and strong volume growth in commercial banking , while wealth management revenue benefitted from significant growth in asset balances driven by market appreciation , record mutual fund sales , and an increased level of investment activity by clients . Higher expenses were primarily driven by revenue - based variable compensation reflecting favourable business results . U.S. Commercial Banking and Wealth Management reported net income of $ 266 million for the third quarter , up $ 206 million or 343 % from the third quarter a year ago . Excluding items of note , adjusted net income ( 1 ) was $ 279 million , up $ 204 million or 272 % from the third quarter a year ago , due to a reversal of loan loss provisions in the current quarter and higher U.S. dollar revenue , partially offset by the impact of foreign exchange translation . In U.S. dollars , adjusted pre - provision , pre - tax earnings ( 1 ) of US $ 228 million were up US $ 32 million or 16 % from the third quarter a year ago due to higher revenue , primarily driven by volume growth and higher fees , partially offset by higher employee - related expenses . Capital Markets reported net income of $ 491 million for the third quarter , up $ 48 million or 11 % from the third quarter a year ago , primarily due to a reversal of provision for credit losses , partially offset by higher expenses . Pre - provision , pre - tax earnings ( 1 ) were down $ 48 million or 7 % from the third quarter a year ago , due to lower global markets trading revenue and higher expenses , partially offset by higher revenue from corporate and investment banking and our direct financial services business . Credit quality Provision for credit losses was a reversal of $ 99 million , compared with a provision for credit losses of $ 525 million from the third quarter a year ago . Provision reversals on performing loans were recognized across all strategic business units ( SBUs ) in the current quarter mainly resulting from an improvement in our economic outlook , while the same quarter last year included a provision for credit losses across all SBUS due to an unfavourable change in our economic outlook relating to the early stages of the COVID - 19 pandemic . Provision for credit losses on impaired loans was also down compared with the third quarter a year ago , due to lower impairments net of reversals in all SBUS except Corporate and Other . ( 1 ) For additional information , see the " Non - GAAP measures " section . Pre - provision , pre - tax earnings is revenue net of non - interest expenses and is a non - GAAP measure . Adjusted pre - provision , pre- tax earnings is revenue net of non - interest expenses adjusted for items of note and is a non - GAAP measure . CIBC Third Quarter 2021 News Release 1